Producer Company Registration

Producer Company

Producer company is a great idea, if you are a farmer or group of farmers, it is a hybrid or mix-up of Private Limited and Cooperative Society. It Combines the goodness of a Cooperative enterprise and the vibrancy and efficiency of a company.

Meaning of Producer Company---

A Producer Company is a Company or body corporate which is registered under section 465 of the Companies Act, 1956 and shall engaged in or relate to any of the following activities classified broadly :-

  • Production , Harvesting, Processing, Procurement, Grading, Pooling, Handling, Marketing, Selling, Export Of Primary Produce Of The Members Or Import Of Goods Of Services For Their Benefit ;
  • Rendering Technical Services, Consultancy Services, Training, Education, Research And Development And All Other Activities For The Promotion Of The Interests Of Its Members;
  • Generation, Transmission And Distribution Of Power, Revitalization Of Land And Water Resources, Their Use, Conservation And Communications Relatable To Primary Produce;
  • Promoting Mutual Assistance, Welfare Measures, Financial Services, Insurance Of Producers Or Their Primary Produce;

Products Majorly Produced ---

  • Produce of farmers,
  • arising from agriculture (including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming plantation products), or from any other; or
  • Produce of persons engaged in handloom,
  • handicraft primary activity or service which promotes the interest of the farmers or consumers and other cottage industries ;
  • Any product resulting from any of the above activities, including by-products of such products ;
  • Any product resulting from an ancillary activity that would assist or promote any of the aforesaid activities or anything ancillary thereto
  • Any activity which is intended to increase the production of anything referred to above to improve the quality thereof

Who Can register a Producer Company—

At least 10 or more persons, who called the member of company can register producer company. Incorporation of Producer Company is now simpler with VAKIL KARO, the following are the pre-requirements related to Incorporation of Producer Company—

  • At least 10 or more persons (farmers/producers) are required to form a Producer Company
  • Out of 10 persons, 5 must be director of company.
  • Authorized Capital of Company shall be at least Rs. 5 lakhs.
  • KYC like PAN, Aadhaar, Photo, Mobile, email, latest Bank statements are required
  • Company Name (to be registered)
  • Company's office address (Rent agreement with latest electricity bill etc.)

Time Taken –

Producer Company Registration time taken is 7-15 days form the date of filling of documents.

What is Registration Procedure to register a Producer Company?

  • Application of Name Approval (RUN)
  • RUN stands for "Reserve Unique Name". This is the first process to start the Company Registration , here we apply at least two proposed name of company at ROC (Registrar of Companies) and out of which ROC approves one name , if it is not resembled with other name of companies, already registered.

  • Application for Digital Signatures (DSC)
  • All the members of Company required Digital Signatures. Class-2 DSC have to be applied for all the members of company.

  • Apply for DIN
  • DIN stands for Director Identification Number and for all the directors DIN has to be applied, without it no one can become a director in the Company.

  • Preparation of Memorandum of Association (MOA) & Articles of Association (AOA)
  • Memorandum of Association (MOA) & Articles of Association (AOA) are the core legal documents of Company, without that company can not survive. A persons who has adequate skills only can draft the MOA & AOA, therefore it is important that, you should take care while drafting of such documents.

  • Filling of all the documents with MOA & AOA to Registrar of Companies
  • It is the final stage to get register the company and filing of all the documents to ROC with drafted MOA & AOA. If Registrar of Companies (ROC) satisfied with all the details filled with, he shall issue the registration or incorporation certificate under the sign and seal.

Compliances of Producer Company

  • After registration of Company, Appointment of Auditor is complied with in 30 days from the date of Incorporation of Company and Hence ADT-1 has to be filled with the ROC.
  • The Board shall hold four meetings every year with the gap of not more than three months between two meetings by giving seven days' advance notice.
  • The Producer Company shall hold Annual General Meeting each financial year. The gap between two AGM shall not be more than fifteen Months. The AGM shall be called by issuing at least 14 days' notice.
  • The Producer Company shall hold Annual General Meeting each financial year. The gap between two AGM shall not be more than fifteen Months. The AGM shall be called by issuing at least 14 days'notice.
  • A Producer Company shall hold its first annual general meeting within a period of ninety days from the date of its incorporation.
  • Every Producer company is required to file its Financial Statements, along with Notice calling General Meeting, Directors Report, Auditors Report and Balance sheet to ROC in Form AOC-4 within 60 days from the date of Annual General Meeting of the Company.
  • Every Producer company is required to file its Annual Return along with List of members of Producer Company in Form MGT-7 within 60 days from date of Annual General Meeting.
  • Every Producer Company shall have internal audit of its accounts carried out in such intervals and in such manner as specified by its articles, by a Chartered Accountant.

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